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How Much Should You Budget for SEO Services?

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How Much Should You Budget for SEO Services?

Digital is the primary marketing channel for many companies.

Many owners and executives still have difficulty budgeting for online marketing.

Budgeting for SEO can be complex and influenced by factors like project scope, industry competition, and specific services needed. There is no universal calculator for calculating costs.

This article explores key SEO pricing components and how to calculate and plan your budget.

What Businesses Don’t Understand About Investing In SEO

SEO is an area where you truly get what you pay for. Investing adequately in SEO services can significantly impact your online presence and business growth.

According to recent data, over half of all SEO professionals work with monthly budgets ranging from $500 to $5,000, with 28.6% reporting budgets in the $1,001-$5,000 range.

Image from Search Engine Journal, May 2024

Many business owners are reluctant to invest in SEO, often because they lack understanding of how search marketing works and are too busy running their businesses to learn about SEO.

Most industries follow a standardized, step-by-step process to achieve specific outcomes.

Many business owners mistakenly assume SEO works the same way, treating it as a commodity.

This misconception leads them to fall for low-cost offers like $99/month “guaranteed page one” services from spammers and scammers, which never deliver meaningful results.

The Cost Of Cheap SEO

I belong to several internet marketing groups on Facebook. It’s truly frightening the number of noobs posing as SEO professionals and taking on clients.

It’s common to see a question like: “I just landed a client that wants to rank for [keyword x] – how do I do it?”

A close second is people using link schemes, specifically private blog networks and third-party pages known as parasite SEO, without ever explaining the risk to clients. Many use AI to generate content at a scale without fact-checking.

However, AI can be a powerful tool when used ethically in SEO.

AI helps automate data analysis, identify patterns, and streamline content creation and optimization, which in turn helps to reduce SEO costs.

If business owners were just throwing money away by hiring an incompetent SEO, that would be bad enough. Unfortunately, the collateral damage from “cheap SEO” can go much deeper.

It can draw a Google penalty and virtually wipe out a website’s visibility on the web.

Business owners must remember that they’re ultimately responsible for any SEO work performed on their site. They should discuss the specific tactics service providers use before entering into an agreement.

Managing Your Resources

With Google utilizing 200+ (and likely exponentially more) ranking factors, it’s easy to become intimidated and paralyzed.

The good news is that if you focus on just three factors, you can still crush it, regardless of your niche.

Here’s what you need to pay attention to:

1. Information Architecture

Your site should:

2. Content

Your site’s content should conform to best practices as disclosed in the Search Quality Ratings Guidelines with an emphasis on:

3. Backlinks

  • It must be natural. Avoid popular link schemes like private blog networks (PBNs) and paid guest posts. Instead, focus on building real links from topically relevant websites with high-quality content.
  • Quality is key: A lower number of high trust/high authority/relevant links can outperform a large quantity of lower quality links.

You Manage What You Measure – Set Goals

Before establishing a budget, one must define specific goals for a campaign.

Your goals should include measurable results, a defined timeframe, and an actual measurement for success.

At one time, success was measured solely by keyword rankings. While SERPs remain an important metric, they are not the most important.

I would argue that the most important metrics are those that directly impact the bottom line. Organic sessions, goal conversions, and revenue fall into that category.

Goal setting could include improving organic sessions by X%, increasing conversions by Y per month, and/or increasing revenues by Z%.

When setting goals, it’s important to keep a couple of things in mind.

First, they need to be achievable. Stretch goals are fine, but pie-in-the-sky benchmarks can actually work as a disincentive.

Equally important: you need to give the campaign time to work.

According to Google,

“…in most cases, SEOs need four months to a year to help your business first implement improvements and then see potential benefit.”

Developing A Budget

Your goals will determine what tactics are needed for success. This, in turn, sets up a framework for developing an action plan and the budget necessary to support that plan.

This brings us full circle to positioning and paying attention to those factors that move the dial.

The answers to those questions will determine priorities as well as the volume of work needed to reach your goals.

In many cases, the actual work performed will be the same, regardless of budget level. The difference is the volume of work performed.

If you add twice the content and twice the links at budget level “B” compared to budget level “A,” you are more likely to achieve earlier success at the higher budget.

That said, the right budget is one you can afford, without losing sleep, for a minimum of 6 and ideally 12 months.

It takes time to properly plan, implement, and tweak a campaign to evaluate its success.

Also, remember that the lower the budget, the longer the journey.

How Much Can You Expect To Spend On SEO?

To execute a local campaign, you could budget between $1,001 and $5,000 per month, the most common budget range among SEO professionals SEJ surveyed in 2023.

The budget will likely be higher for a national or international campaign, with many SEO pros working with budgets exceeding $10,000 per month for broader campaigns.

Some firms offer a “trial package” at a lower price with no contract. This allows prospective clients to test their services while minimizing risk.

There are some options if you can’t afford to retain a top-level SEO pro. The most common is a one-time website SEO audit with actionable recommendations.

Just fixing your website will often lead to a meaningful boost in organic traffic. Content development and keyword analysis are other areas where you can get help from a pro for a one-time fixed rate.

Another option is to become an expert and do it yourself.

SEO Cost Calculator – Measuring Organic Search (SEO) ROI

The following is a calculator commonly used for (incorrectly) measuring return on investment for SEO.

Organic Search ROI Calculation Assuming “One Shots”

Example: selling blue widgets
Number of new customers acquired via organic search in a given month 10
Average net income (profit) per order $100
Total profits from new organic search customers in a given month $1,000
Monthly marketing budget (expense) $2,500
Monthly profits from new customers ($1,000) divided by monthly organic marketing spend ($2,500) ROI = -60%

The flaw in the above calculator is that it fails to take into consideration the lifetime value of a new customer.

Online retailers need repeat business to grow. By not calculating the lifetime value of a new customer, the true ROI is grossly understated.

The right way to calculate ROI is to build lifetime value into the calculator.

To calculate the cost of SEO and its true ROI use this formula:

Average lifetime profits from new customers acquired in one month divided by monthly organic marketing spend.

Organic Search SEO ROI Calculation Assuming Lifetime Value

Same example: selling blue widgets
Number of new customers acquired via organic search in a given month 10
Average net income (profit) per order $100
Total profits from new organic search customers in a given month $1,000
Average number of orders per customer over a “lifetime” 5
Total average lifetime profit $5,000
Monthly marketing budget (expense) $2,500
Average lifetime profits from new customers ($5,000) divided by monthly organic marketing spend ($2,500) ROI = 200%

As you can see, that one variable makes a huge difference in how the ROI is stated.

SEO Campaigns Are Long-Term Investments

Unlike PPC, an organic search campaign will not yield immediate results.

A comprehensive SEO campaign will involve a combination of technical SEO, content marketing, and link-building. Even when executed to perfection, it takes time for Google to recognize and reward these efforts.

That said, the traffic earned from these efforts is often the most consistent and highest-converting among all channels.

FAQ

How do SEO professionals measure success?

The top metrics used to measure SEO performance are click-through rate (CTR), keyword rankings, and branded vs. non-branded traffic.

What is the most common budget range for SEO campaigns?

The most common SEO budget range is between $1,001 and $5,000 per month, with 28.6% of respondents working within this range.

What are the primary factors that affect SEO budgeting?

Determining the appropriate budget for SEO involves considering several key components that can influence the overall cost. These factors include the scope of the SEO project, the level of competition within the industry, and the specific types of SEO services that are required. For example, a small business in a niche market with low competition might budget around $1,000 per month for local SEO services, focusing on optimizing its Google My Business profile and building local citations. In contrast, an ecommerce company targeting an audience in a highly competitive industry might need to budget $5,000 to $10,000 monthly for a comprehensive SEO strategy that includes extensive link building and technical SEO audits.

What risks are associated with choosing low-cost SEO services?

Opting for low-cost SEO services poses significant risks to a business. These services often fail to comply with ethical SEO practices, resulting in the use of tactics such as link schemes or private blog networks (PBNs), which can be detrimental to a site’s reputation and rankings. Such practices can potentially attract penalties from Google, severely compromising a site’s online visibility and trustworthiness. It is crucial for business owners to be vigilant and discerning when selecting SEO professionals to avoid these harmful consequences.

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8% Of Automattic Employees Choose To Resign

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8% Of Automattic Employees Choose To Resign

WordPress co-founder and Automattic CEO announced today that he offered Automattic employees the chance to resign with a severance pay and a total of 8.4 percent. Mullenweg offered $30,000 or six months of salary, whichever one is higher, with a total of 159 people taking his offer.

Reactions Of Automattic Employees

Given the recent controversies created by Mullenweg, one might be tempted to view the walkout as a vote of no-confidence in Mullenweg. But that would be a mistake because some of the employees announcing their resignations either praised Mullenweg or simply announced their resignation while many others tweeted how happy they are to stay at Automattic.

One former employee tweeted that he was sad about recent developments but also praised Mullenweg and Automattic as an employer.

He shared:

“Today was my last day at Automattic. I spent the last 2 years building large scale ML and generative AI infra and products, and a lot of time on robotics at night and on weekends.

I’m going to spend the next month taking a break, getting married, and visiting family in Australia.

I have some really fun ideas of things to build that I’ve been storing up for a while. Now I get to build them. Get in touch if you’d like to build AI products together.”

Another former employee, Naoko Takano, is a 14 year employee, an organizer of WordCamp conferences in Asia, a full-time WordPress contributor and Open Source Project Manager at Automattic announced on X (formerly Twitter) that today was her last day at Automattic with no additional comment.

She tweeted:

“Today was my last day at Automattic.

I’m actively exploring new career opportunities. If you know of any positions that align with my skills and experience!”

Naoko’s role at at WordPress was working with the global WordPress community to improve contributor experiences through the Five for the Future and Mentorship programs. Five for the Future is an important WordPress program that encourages organizations to donate 5% of their resources back into WordPress. Five for the Future is one of the issues Mullenweg had against WP Engine, asserting that they didn’t donate enough back into the community.

Mullenweg himself was bittersweet to see those employees go, writing in a blog post:

“It was an emotional roller coaster of a week. The day you hire someone you aren’t expecting them to resign or be fired, you’re hoping for a long and mutually beneficial relationship. Every resignation stings a bit.

However now, I feel much lighter. I’m grateful and thankful for all the people who took the offer, and even more excited to work with those who turned down $126M to stay. As the kids say, LFG!”

Read the entire announcement on Mullenweg’s blog:

Automattic Alignment

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YouTube Extends Shorts To 3 Minutes, Adds New Features

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YouTube Extends Shorts To 3 Minutes, Adds New Features

YouTube expands Shorts to 3 minutes, adds templates, AI tools, and the option to show fewer Shorts on the homepage.

  • YouTube Shorts will allow 3-minute videos.
  • New features include templates, enhanced remixing, and AI-generated video backgrounds.
  • YouTube is adding a Shorts trends page and comment previews.

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How To Stop Filter Results From Eating Crawl Budget

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How To Find The Right Long-tail Keywords For Articles

Today’s Ask An SEO question comes from Michal in Bratislava, who asks:

“I have a client who has a website with filters based on a map locations. When the visitor makes a move on the map, a new URL with filters is created. They are not in the sitemap. However, there are over 700,000 URLs in the Search Console (not indexed) and eating crawl budget.

What would be the best way to get rid of these URLs? My idea is keep the base location ‘index, follow’ and newly created URLs of surrounded area with filters switch to ‘noindex, no follow’. Also mark surrounded areas with canonicals to the base location + disavow the unwanted links.”

Great question, Michal, and good news! The answer is an easy one to implement.

First, let’s look at what you’re trying and apply it to other situations like ecommerce and publishers. This way, more people can benefit. Then, go into your strategies above and end with the solution.

What Crawl Budget Is And How Parameters Are Created That Waste It

If you’re not sure what Michal is referring to with crawl budget, this is a term some SEO pros use to explain that Google and other search engines will only crawl so many pages on your website before it stops.

If your crawl budget is used on low-value, thin, or non-indexable pages, your good pages and new pages may not be found in a crawl.

If they’re not found, they may not get indexed or refreshed. If they’re not indexed, they cannot bring you SEO traffic.

This is why optimizing a crawl budget for efficiency is important.

Michal shared an example of how “thin” URLs from an SEO point of view are created as customers use filters.

The experience for the user is value-adding, but from an SEO standpoint, a location-based page would be better. This applies to ecommerce and publishers, too.

Ecommerce stores will have searches for colors like red or green and products like t-shirts and potato chips.

These create URLs with parameters just like a filter search for locations. They could also be created by using filters for size, gender, color, price, variation, compatibility, etc. in the shopping process.

The filtered results help the end user but compete directly with the collection page, and the collection would be the “non-thin” version.

Publishers have the same. Someone might be on SEJ looking for SEO or PPC in the search box and get a filtered result. The filtered result will have articles, but the category of the publication is likely the best result for a search engine.

These filtered results can be indexed because they get shared on social media or someone adds them as a comment on a blog or forum, creating a crawlable backlink. It might also be an employee in customer service responded to a question on the company blog or any other number of ways.

The goal now is to make sure search engines don’t spend time crawling the “thin” versions so you can get the most from your crawl budget.

The Difference Between Indexing And Crawling

There’s one more thing to learn before we go into the proposed ideas and solutions – the difference between indexing and crawling.

  • Crawling is the discovery of new pages within a website.
  • Indexing is adding the pages that are worthy of showing to a person using the search engine to the database of pages.

Pages can get crawled but not indexed. Indexed pages have likely been crawled and will likely get crawled again to look for updates and server responses.

But not all indexed pages will bring in traffic or hit the first page because they may not be the best possible answer for queries being searched.

Now, let’s go into making efficient use of crawl budgets for these types of solutions.

Using Meta Robots Or X Robots

The first solution Michal pointed out was an “index,follow” directive. This tells a search engine to index the page and follow the links on it. This is a good idea, but only if the filtered result is the ideal experience.

From what I can see, this would not be the case, so I would recommend making it “noindex,follow.”

Noindex would say, “This is not an official page, but hey, keep crawling my site, you’ll find good pages in here.”

And if you have your main menu and navigational internal links done correctly, the spider will hopefully keep crawling them.

Canonicals To Solve Wasted Crawl Budget

Canonical links are used to help search engines know what the official page to index is.

If a product exists in three categories on three separate URLs, only one should be “the official” version, so the two duplicates should have a canonical pointing to the official version. The official one should have a canonical link that points to itself. This applies to the filtered locations.

If the location search would result in multiple city or neighborhood pages, the result would likely be a duplicate of the official one you have in your sitemap.

Have the filtered results point a canonical back to the main page of filtering instead of being self-referencing if the content on the page stays the same as the original category.

If the content pulls in your localized page with the same locations, point the canonical to that page instead.

In most cases, the filtered version inherits the page you searched or filtered from, so that is where the canonical should point to.

If you do both noindex and have a self-referencing canonical, which is overkill, it becomes a conflicting signal.

The same applies to when someone searches for a product by name on your website. The search result may compete with the actual product or service page.

With this solution, you’re telling the spider not to index this page because it isn’t worth indexing, but it is also the official version. It doesn’t make sense to do this.

Instead, use a canonical link, as I mentioned above, or noindex the result and point the canonical to the official version.

Disavow To Increase Crawl Efficiency

Disavowing doesn’t have anything to do with crawl efficiency unless the search engine spiders are finding your “thin” pages through spammy backlinks.

The disavow tool from Google is a way to say, “Hey, these backlinks are spammy, and we don’t want them to hurt us. Please don’t count them towards our site’s authority.”

In most cases, it doesn’t matter, as Google is good at detecting spammy links and ignoring them.

You do not want to add your own site and your own URLs to the disavow tool. You’re telling Google your own site is spammy and not worth anything.

Plus, submitting backlinks to disavow won’t prevent a spider from seeing what you want and do not want to be crawled, as it is only for saying a link from another site is spammy.

Disavowing won’t help with crawl efficiency or saving crawl budget.

How To Make Crawl Budgets More Efficient

The answer is robots.txt. This is how you tell specific search engines and spiders what to crawl.

You can include the folders you want them to crawl by marketing them as “allow,” and you can say “disallow” on filtered results by disallowing the “?” or “&” symbol or whichever you use.

If some of those parameters should be crawled, add the main word like “?filter=location” or a specific parameter.

Robots.txt is how you define crawl paths and work on crawl efficiency. Once you’ve optimized that, look at your internal links. A link from one page on your site to another.

These help spiders find your most important pages while learning what each is about.

Internal links include:

  • Breadcrumbs.
  • Menu navigation.
  • Links within content to other pages.
  • Sub-category menus.
  • Footer links.

You can also use a sitemap if you have a large site, and the spiders are not finding the pages you want with priority.

I hope this helps answer your question. It is one I get a lot – you’re not the only one stuck in that situation.

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